Gold Technical Report: Gold prices showed some strength yesterday after a mild correction, a day before. The medium trend picked up pace after crossing 50 DMA which is at 1690 on the Daily charts currently. The next Major resistance is 200 DMA @1796, above which the main trend may turn positive. The short-term Stochastics Oscillator is at 56 and the Relative Strength Index is at 61.
Silver Technical Report: The silver prices, parallel with gold prices showed some upmove yesterday after profit booking, a day before. The prices continue to trade near 200 DMA @21.30. On the downside, major support is only at 50 DMA @20.00, crossing below which may change the medium-term trend into negative. The Short term Stochastics Oscillator is at 38 and the RSI momentum is near 56.
Fundamental Report: Gold and silver are aiming higher as market participants continue to react to multiple events. People in China’s southern manufacturing hub of Guangzhou clashed with white hazmat-suited riot police on Tuesday night, videos on social media showed, as frustration with stringent Covid-19 rules three years into the pandemic boiled over. China’s capital Beijing reported 1,282 symptomatic and 3,240 asymptomatic cases on Tuesday. High numbers were also reported from Shanghai, Guangzhou, and Chongqing. Concerns about mass protests in China are front and center. According to the New York Times, “After a weekend of confrontations between officials and demonstrators, video from two sites in Shanghai and Beijing showed a heavy security presence.” Chinese citizens have staged protests against China’s strict Covid restrictions and lockdowns, leading to nationwide protests. Investors are concerned that the lockdowns and strict restrictions will limit economic growth in China the world’s second-largest economy. Various members of the Federal Reserve have been extremely vocal about upcoming interest rate hikes. One of the more hawkish Federal Reserve members is the St. Louis Fed President James Bullard. Last week he commented on the need for the Federal Reserve’s benchmark rate to go as high as 7% to deal with lowering inflation.
Consumer confidence in the United States dropped to a four-month low in November. A survey released today by the Conference Board revealed that the consumer confidence index dropped to 100.2 in November from 102.2 in October. This is the lowest level of confidence since July. This survey revealed that U.S. consumers continue to be overly concerned about the high-level inflation and interest rate hikes by the Federal Reserve raising the cost of borrowing. Chairman Powell will deliver a speech sponsored by the Brookings Institution in Washington. Typically, the chairman would focus on the labor market at this venue however, he is expected to clarify the Federal Reserve’s upcoming rate hikes. It is hoped that his statements will reduce the consumer angst from recent hawkish statements made by multiple Federal Reserve officials. On Friday the BLS will release last month’s nonfarm payroll jobs report. Early forecasts are anticipating that there will have been an additional 200,000 jobs added last month. This would be a decline from the prior month’s jobs report which revealed 315,000 new jobs were added to U.S. payrolls.